In recognition of the 15th anniversary of the Lilly Ledbetter Fair Pay Act, the Biden administration released on Monday, January 29th, a Notice of Proposed Rule Making (NPRM) that would prohibit federal contractors from using job applicant’s prior salary history when setting pay and would require federal contractors to post the expected salary range in its job postings.
The proposed rule will:
- prohibit contractors and subcontractors from seeking and considering information about job applicants’ compensation history when making employment decisions about personnel working on or in connection with a government contract; and
- require contractors and subcontractors to disclose, in all advertisements for job openings involving work on or in connection with a government contract placed by or on behalf of the contractor or subcontractor, the compensation to be offered to the hired applicant, for any position to perform work on or in connection with the contract.
There is also a proposed mechanism for applicants to submit a complaint for contractor noncompliance, which will be investigated by the contracting agency and forwarded to OFCCP if the complaint alleges discrimination.
The proposed rule is open for public comment until April 1, 2024.
Our Affirmative Action, OFCCP and Government Contract Compliance Practice Group and Pay Equity Resource Group are partnering to digest the proposed rule and will release further details and insights.